Orpheus Energy has commenced a 7-hole drilling program at its ADK coal project in South Kalimantan. The drill holes will be completed in unmined areas of the mining lease in two separate zones to test for coal potential.  1

The zones cover the northern and southern parts of the concession which are next to the main central block where past and current mining operations have been established.

Orpheus says the total coal exploration target of the two zones is between 2.5 million tonnes and 3.7 million tonnes with a calorific value of up to 5600 Kcal/kg.

The ADK project is on the southern coast of Kalimantan, 15km from the nearest port. The mine has been in production since April 2011, with 95,000 tonnes of coal produced so far this calendar year.

Orpheus acquired a 50% share in ADK last month and is expecting to announce a JORC-compliant resource later this month.

Orpheus’ executive chairman Wayne Mitchell says, “The JORC drilling program will confirm our understanding of the resource potential of this project, and this new information will assist us in longer term mine planning for ADK.

“We would like to reassure shareholders that the company is unaffected by the recent commentary on the Indonesian Government’s plans to limit foreign ownership to 49% over 10 years. With our strategic local JV partner PT Mega Coal our strategy has always been to maintain our 50% or 51% equity in each project via a local Indonesian PMA company.”

The company is also reassessing past drilling of the current mine pit with new mine plans formulated to maximize the efficiency of the coal extraction.